0. Managing Critical Customer Relationships in Higher Education
May 13, 2002 – CUMREC 2002 – Minneapolis, MN
Copyright Joe Burkhart, Mark Danis and Kwok Lam, This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

1. For further information or copies of this presentation
Presenters
Mark Danis
Senior Vice President, Higher Education
Joe Burkhart
Manager, Higher Education
Kwok Lam
Senior Manager,Higher Education
For further information or copies of this presentation
Contact
Joe Burkhart at:

2. Presentation Agenda
What is Customer (Constituency) Relationship Management
Issues facing the Institution
Student For Life
Enabling Technology
Benefits
Q&A

3. Corporations Are Beginning To Understand Their Customers
The turn of the millennium has shown corporate America’s renewed focus on what is most fundamental to business: The Customer
“We have only two sources of competitive advantage:
1. The ability to learn more about our customers faster than the competition.
2. The ability to turn that learning into action faster than the competition.”
Jack Welch
General Electric
The turn of the century has generated a renewed focus on what is fundamental to business: the Customer.
The late 90’s was about getting your back-office in order: Manufacturing, Finance, HR – all the functions that customers don’t see.
The 2000’s are about the front-office – optimizing on the opportunities in those functions customers see: Sales, Marketing, Customer Service.
At the turn of the millennium there was an article in the Wall Street journal by Jack Welch – one of our favorite clients – about the need to refocus on the customer. He stated that every major initiative on his agenda for the next five years would be focused on customer-centric improvement.
His comments above provide a theme that resonates throughout the presentation….learning more about customers and acting faster than the competition.
(By the way – we are GE’s integrator of choice for CRM)

4. Harvard Business Review
What CRM really is ...
Entire new markets have emerged to address the issues of Customer Relationship Management. This has created confusion on what CRM really is ...
CRM is…
CRM aligns business processes with customer strategies to build customer loyalty and increase profits over time. (Note that the words “technology” and “software” are conspicuously absent from the definition.
This concept of re-focusing on the customer has created an entire industry and spawned new markets and many players (for example software companies such as Siebel, Epiphany, Broadvision, etc). This often confuses our clients. They ask us: What is CRM? Is it Siebel? Is it Epiphany? Is it BV?
The answer is that each is one small part of CRM.
CRM is not just technology. It is a comprehensive set of business models, processes, strategies and technologies that address one or many customer facing functions in a way that builds sustainable customer loyalty and business value.
They key word here is sustainable. A real CRM initiative creates a competitive advantage that can not easily be duplicated by your competitor.
Harvard Business Review
February 2002

5. Customer Relationship Management (CRM)
The market is driving Institutions to focus on Customer Relationship Management to deliver business performance.
DRIVERS
Competition
Constituent Expectations
Increasing Service Delivery Costs
Complex Institutional Infrastructure
Multiple Service Touch Points
BENEFITS
Revenue generation
Cost Reduction
Sustained Customer Loyalty
Competitive Advantage
The market is driving CRM as a vehicle to deliver business performance. What is driving this? The competitive landscape has changed. The internet has created demanding buyers with little tolerance for poor customer service. Their expectations for price, availability and convenience have risen dramatically. If customers aren't satisfied they wont wait – they will go somewhere else. Globalization is also contributing. Customers expect the same level of service regardless of where they are in the world.
What about benefits? CRM systems are unique in that the business benefits derived from properly implemented systems give you a “double whammy” effect.
CRM systems are designed to be revenue engines (unlike ERP systems which are focused on cost reduction – e.g. running the business more efficiently).
However, when CRM initiatives are properly implemented they also result in cost savings (cost take-out in call centers, shifting of workload to lower cost channels, reduction in SG&A).
This gives you a “double whammy” effect by increasing revenues and decreasing costs simultaneously.

6. Disparate Customer Experience

7. Finance & Administration
Enterprise Issues
Finance & Administration
President’s Office
Information Technology
Customer Satisfaction
Enrollment
Branding & Image
Advancement
Alumni Support
Fundraising
Budget
Enrollment Capacity
Financial Aid Discount Rate
Accounts Receivable
Integration
Multiple Projects & Initiatives
Staff Skill Sets
Evolving Technology
Diverse Organizational Needs and Expectations
Academic Affairs Needs
Learning Management
Retention
Student Services Needs
Student Satisfaction
Student Participation

8. Student For Life Student Life Cycle
KPMG Consulting develops CRM business processes along the “Student Life Cycle”
Potential Recruit
Successful Student
Contributing Alumni
Student For Life

9. Life-Cycle/Interaction Management

10. Life Cycle Capability Needs
Pre-Attending
Attending
Ability to project recruitment and retention
Ability to deliver personalized service
Ability to deliver proactive service
Ability to manage service
Ability to support self-service
Ability to integrate technologies for a seamless and blended customer experience
Ability to determine effectiveness of programs and services.
Ability to deliver personalized service
Ability to deliver proactive service
Ability to manage service
Ability to provide “One-Stop-Service”
Ability to support self-service
Ability to integrate technologies for a seamless and blended customer experience
Ability to determine effectiveness of programs and services.

11. Life Cycle Capability Needs
Post-Attending
Ability to identify supportive alumni and donors
Ability to manage solicitations of supportive alumni and donors
Ability to deliver personalized service
Ability to deliver proactive service
Ability to manage service
Ability to support self-service
Ability to integrate technologies for a seamless and blended customer experience
Ability to determine effectiveness of programs and services.

12. CRM is to the “Front Office” as ERP is to the “Back Office”
CRM vs. ERP
CRM is to the “Front Office” as ERP is to the “Back Office”
ERP applications are designed to reduce costs and improve transaction efficiency.
CRM applications enable an institution to:
Improve Market Promotion for the Institution
Increase Customer Satisfaction
Promote Loyalty to the Institution

13. Human Resources / Payroll Data Management & Warehouse
Enabling Technology
Pre-Attending
Attending
Post-Attending
Admissions
Registration
Financial Aid
Student Accounts
Academic Advising
Learning Management
Advancement
Financials
Human Resources / Payroll
ERP
Data Management & Warehouse
Data
Application Integration
Infrastructure
Hardware

14. Human Resources / Payroll
Enabling Technology
Pre-Attending
Attending
Post-Attending
Marketing
Portal Experience
Contact Management
Knowledge Management
Analytics
Customer Management
Admissions
Registration
Financial Aid
Student Accounts
Academic Advising
Learning Management
Advancement
Financials
Human Resources / Payroll
Application Integration
ERP
Data Management & Warehouse
Data
Hard Ware
Infrastructure

15. Customer Satisfaction Donation Volume and Cycle Time
CRM Benefits
Source: Survey of 295 companies by Insight Technologies Group
Cost of Recruitment
Before
After
Cost of Sale
35%
Customer Satisfaction
Before
After
20%
Donation Volume and Cycle Time
Before
After
Sales Cycle Time
25%
Performance Measures
Commercial
Sector
There are no benchmarks in Higher Ed, however in commercial applications recent studies have shown:
Up to 42% increase in REVENUE
Up to 35% decrease in COST OF SALE
Up to 80% decrease in ORDER ERRORS
Up to 25% reduction in the length of SALES CYCLE
Up to 2% increase in MARGINS
Up to 20% increase in CUSTOMER SATISFACTION ratings
These could translate into:
Increase revenue through improved recruitment and retention
Reduction in recruitment costs
Improved customer service
Quicker yield conversions
Improved student satisfaction
Source: Survey of 295 companies by Insight Technologies Group
Higher Ed
Potential

16. Other Potential Benefits
Benefits to Customer
Single Point of Contact “One-Stop-Shopping”
Self Service
Proactive Service
Improved Response Time
“End to End” Service
More “One and Done” Contacts
Positive 1st impression

17. Other Potential Benefits
Benefits to Institutions
Consolidated view of customer
Lower Cost to Recruit
Increase Retention
Reduced churn on service deliveries – improved efficiencies
Workflow Management
Performance Management
Quality Assurance
Service Tracking
Service Benchmarking
Increase Retention of Staff
Customer Profiling
Consistent responses
Effective Volume management
Reduced Training costs

18. Singular Customer Experience
Questions & Answers
Singular Customer Experience
WEB
Fax
Phone
In Person
Multi-Channel
Unified Channels
For further information or copies of this presentation
Contact
Joe Burkhart at: